Ownership Scheme: Obama Regime Officially Moves To Nationalize Banks
WASHINGTON - President Obama’s top economic advisers have determined that they can shore up the nation’s banking system without having to ask Congress for more money any time soon, according to administration officials.
In a significant shift, White House and Treasury Department officials now say they can stretch what is left of the $700 billion financial bailout fund further than they had expected a few months ago, simply by converting the government’s existing loans to the nation’s 19 biggest banks into common stock.
Converting those loans to common shares would turn the federal aid into available capital for a bank — and give the government a large ownership stake in return.
While the option appears to be a quick and easy way to avoid a confrontation with Congressional leaders wary of putting more money into the banks, some critics would consider it a back door to nationalization, since the government could become the largest shareholder in several banks.
The Treasury has already negotiated this kind of conversion with Citigroup and has said it would consider doing the same with other banks, as needed. But now the administration seems convinced that this maneuver can be used to make up for any shortfall in capital that the big banks confront in the near term.
More risk to taxpayers
Each conversion of this type would force the administration to decide how to handle its considerable voting rights on a bank’s board.
Taxpayers would also be taking on more risk, because there is no way to know what the common shares might be worth when it comes time for the government to sell them.
Treasury officials estimate that they will have about $135 billion left after they follow through on all the loans that have already been announced. But the nation’s banks are believed to need far more than that to maintain enough capital to absorb all their losses from soured mortgages and other loan defaults.
In his budget proposal for next year, Mr. Obama included $250 billion in additional spending to prop up the financial system. Because of the way the government accounts for such spending, the budget actually indicated that Mr. Obama might ask Congress for as much as $750 billion.
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They can only do this stuff through the back door because they know congress wouldn’t allow it, and they know that.
You have to ask, if this stuff was all legit, then why would they be so sneaky to gain this power?
sneaky about everything…but then again we have a Democratic Congres…they will just bend over….our Government is unchecked………
-aTb
BOA made a profit of $2.8 billion in the first quarter.
And that was after using the evil capitalist system of spreading the wealth around by paying out $1.4 billion in preferred dividends.
Wells Fargo posted 3 billion for the first quarter.
Profits are returning.
The usurper’s regime is concerned.
The crises must continue, the printing of money and it’s resulting devaluation of the US Dollar will not destroy our economy completely until late this year or next when interest rates and inflation will explode.
For now, they are working to destroy confidence in the citizens belief in capitalism and the framework of our nations founding.
They will continue to hold control over vital sections of our economy, the finance system and manufacturing. The resulting impoverishment of our nation will make us long for a lovely rice cooker comrades.
I agree with the bulk of your argument here except for one point:
The banks so called profits are bullshit, pure and simple. You can’t have profits when the banks are utterly and completely insolvent.
Stress test results have been leaked:
http://turnerradionetwork.blogspot.com/2009/04/leaked-bank-stress-test-reults.html
I’m no fan of nationalization, the banks need to be allowed to fail. They are certainly not profitable, they are merely shifting things around to appear so. Capitalism was usurped by the banksters a long time ago, and the piper has come calling.
Contrary to MSM pollyanna hype, the economy is not getting better, there are NO green shoots and people need to get their shit together and prepare for a long depression, not recession.
And I thought the results of the stress tests would all give us a “glimmer of hope”.
These guys are stealing us blind.
I believe JCD is correct, the profits are BS. They ‘might’ have a Quarterly Profit, but that does not erase the BILLIONS of dollars they they are in the hole for.
And if I didn’t know better, I’d say that the stimulus funds they received are ‘artificially’ boosting the said results….and buying Zero and his minions more time to run the scam.
It is nothing more a shell game….
You are mistaken, our economy is already destroyed. Unchecked, unregulated capitalism run by the elite has proven to be nothing more than a sham, a giant ponzi scheme built on unrealistic, self-serving expectations. BofA, Citi, Goldman, AIG, they are all just conduits through which politicians and the corporate execs channel money from taxpayers and the middle class into their plus-sized coffers. Paulson, Rubin, Cox, Geithner, these are all the pricks who jump back and forth from the private to the public realm, setting laws, eliminating regulations, taking profits, sitting on boards. This is not America. This is greed.
Sounds to me like their “crisis opportunity” is coming to a close and they’re grasping for straws to gain control.
Not good at all. I as a taxpayer don’t want the government to be a “shareholder” in the banks. I am for them paying back their “loans” now.
Can somebody show us where in the U.S. CONSTITUTION, this is legal? How about that BIRTH CERTIFICATE? Got to keep the pot stirred up so we forget it? Like the magician, look over here boys and girls, no don’t look at my other hand, look over here.. No doubt, comrades Chavez, Ortega, and Castro, are delighted!
OK… Seriously now, since those Banks and Car Companies took the “Bailout” cash from the Goverment, and the Govt. doesnt want to get out. Should OUR Taxes be going down or shouldnt we be getting a Divident check?
It was the Taxpayers Money, NOT Pelosi or Reid or Frank or Obamas!
We get either one OR we GET THE HELL OUT OF THEIR BUSINESS!
I would have a kegger if Rahm were to be the victim of Spontaneous human combustion
Rahm, just another crook from the Chicago Political machine….
I’m from Chicago. We like da Bears and Superdawg - emerald relish, tomatoes, onion, mustard, a steamed poppy seed bun and crinkle cut fries - Coke, no Pepsi. Skip the ketchup - it’s sacrilegious.
Rahm is a scum sucking, tip toe-ing, wheeler dealer, tutu wearing ballerina.
I found a new ballet dress for Rahm and I’m sure you would all agree that pink is his color
http://www.flickr.com/photos/32179644@N07/3457802294/
Its killing me that these anti American/capitalism/military assholes are calling the shots.
The leader of the free world and the greatest nation on earth should love and defend it not destroy it.
See now THIS is torture… having this tutu-wearing gangsta wannabe POS lecture America on the benefits of the government stealing all the money.
Doesn’t Bill O’Reilly look dumb for last year during the election giving people grief for calling Obama a socialist.
There is no question but that Obama is a socialist who is quickly implementing a socialist agenda. The only question is how radical a socialist Obama is.
No, nationalization should not be considered constitutional.
Barry is violating his oath of office to preserve, protect and defend the Constitution.
just in case anyone has a face book account and wants to team up for mafia wars, add me! here’s the link
Join My Mafia: http://apps.facebook.com/inthemafia/status_invite.php?from=626002358
and Rohm sucks A Fat Goat!!!
http://gunowners.org/fs0901.htm
If the Second becomes history…well,we’re all terrorists and outlaws anyway so….